A Hard Brexit Could Cost Diageo Tens Of Millions
Diageo has stated that it stands to lose tens of millions of pounds as a result of Brexit if the UK doesn't duplicate EU trade deals for Scotch whisky with other countries and maintain an open border with Ireland, where Guinness and Baileys are manufactured.
According to The Irish Independent, Diageo's head of corporate relations Dan Mobley said that the establishment of border controls in Ireland would adversely impact the company's supply chain, which would in turn have a negative affect on its network of small suppliers.
He explained, "We are moving about 18,000 trucks a year over that border, so even small hold-ups to process those truck movements would be really unwelcome, but the big problem would be for our suppliers."
Mobley revealed that Diageo has outlined technical measures to both the British and Irish governments for the relief of potential pressures arising from any new controls. However, he asserted, "We would much rather what was agreed last week, which is for an open border. We are heartened that all sides say that's what they want, but we need to now see the details."
Approximately one quarter of Diageo's annual £12 billion turnover comes from Scotch whiskey, with Scotch being Britain's biggest food and drink export, worth about one fifth of the total.